Stocks finish slightly lower, snapping five-day winning streak.
US stocks traded slightly lower on Thursday, as markets struggled to hold record levels after a week of gains that was propelled by President Trump’s promise of lower taxation.
Two of three major US stock indexes were knocked off record highs. The Standard & Poor’s 500 Index (NYSEARCA:SPY) declined 0.1% to close at 2,347.22. It was the index’s first decline in eight days.
Five of 11 S&P 500 sectors retreated, led by a 1.4% decline in energy shares. Financial stocks finished 0.1% lower.
The Dow Jones Industrial Average (NYSEARCA:DIA) pared losses to close flat at 20,619.77. Meanwhile, the Nasdaq Composite Index (NYSEARCA:QQQ) settled down 0.1% at 5,814.90.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) edged down slightly on Thursday, declining 1.8% to 11.76. The VIX posted an usually large percentage increase on Wednesday, a sign volatility was slowly making its way back into the picture. Relative strength is gaining momentum, and was last seen hovering in the mid-50 range.
Stocks have been on a tear since last Thursday, when President Donald Trump promised to unveil “big league” tax cuts in the coming weeks. Wall Street has set multiple record highs since Trump was elected on November 8.
In commodities, gold prices rose for a second consecutive day, with the April futures contract climbing 0.7% to $1,241.20 a troy ounce. Silver futures rose 0.6% to $18.07 a troy ounce, a more than three-month high on the Comex division of the New York Mercantile Exchange.
The Final Word: Thursday was only a minor setback for US equities, which continue to show the potential for further upside after Trump’s first full month in office.